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ACH Origination

ACH (AUTOMATED CLEARING HOUSE)

What is ACH?

The Automated Clearing House (ACH) is an electronic payment network used by individuals, businesses, financial institutions and government organizations. Electronic ACH payments provide better cash management capabilities and lower costs than traditional paper payments. The nationwide network exchanges funds and information throughout the 50 states as well as the U.S. territories and Canada with participation by over 98% of the nation’s financial institutions, including thousands of savings banks and credit unions.

The ACH network allows funds to be electronically debited or credited to a company’s or individual’s deposit account. Currently these deposit accounts include checking and savings accounts. ACH transactions carry basic entry details such as the individual name (except Point-of-Purchase transactions), financial institution routing number, account number, amount and effective date for the transaction.

The Bank can act as both an Originating Depository Financial Institution (ODFI) and a Receiving Depository Financial Institution (RDFI). As an ODFI, the Bank provides the following services to its customers:
• Direct Deposit of payroll
• Direct Payment of such consumer bills as mortgages, loans, utility bills, and insurance premiums
• Business-to-business payments
• Pre-arranged Debits

The Bank allows Business Internet Banking customers to originate ACH transactions via our banking website (online.shbamerica.com) with the use of OTP (One-Time Password) device.

Transmission Deadline

SHBA -> FRB

Distribution Schedule

FRB -> SHBA

Settlement Schedule
FedACH Service – Forward
11:00 a.m. (ET)
2:00 p.m. (ET)
8:00 p.m. (ET)
2:15 a.m. (ET)
1:00 p.m. (ET)
4:00 p.m. (ET)
10:00 p.m. (ET)
6:00 a.m. (ET)
8:30 a.m. (ET)
Next Business Day
Receiver Credit / Originator
Debit
 
11:00 a.m. (ET)
Next Business Day
Receiver Debit / OriginatorCredit
FedACH Service – Return
Immediate 2:00 p.m. (ET)
End of Day 2:15 a.m. (ET)
1:00 p.m. (ET)
4:00 p.m. (ET)
10:00 p.m. (ET)
6:00 a.m. (ET)
5:00 p.m. (ET)
Immediate Settlement Day
 
8:30 a.m. (ET)
Next Business Day
Receiver Credit / Originator
Debit
 
11:00 a.m. (ET)
Next Business Day
Receiver Debit / Originator Credit